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IntercontinentalExchange Makes $8.2B Deal for NYSE Euronext

The deal comes after a failed attempt by NYSE Euronext to merge with Germany’s Deutsche Börse

Atlanta-based IntercontinentalExchange (NYSE: ICE) will buy NYSE Euronext (NYSE: NYX), which includes the New York Stock Exchange, in an $8.2 billion deal.

The purchase price works out to about $33.12 per share in cash and stock. About 67 percent of the purchase price is in stock, while 33 percent is in cash. NYSE Euronext's stock closed at $24.05 on Dec. 19 and opened at $33.27 after the deal was announced. 

IntercontinentalExchange focuses on trading commodities, while the NYSE Euronext trades stocks and derivatives.

NYSE Euronext shareholders will own about 36 percent of IntercontinentalExchange’s shares after the deal closes.

IntercontinentalExchange had partnered Nasdaq OMX Group to make an $11 billion bid for NYSE Euronext, but the U.S. Department of Justice announced in May 2011 that it would file an antitrust lawsuit to block the deal, which was abandoned.

NYSE Euronext had previously tried to combine with Germany’s Deutsche Börse, which also trades stocks and derivatives, but that deal was stopped by European regulators earlier in 2012.

The IntercontinentalExchange and NYSE Euronext deal is expected to encouter fewer regulatory problems.

NYSE Euronext’s derivatives trading business was reportedly the main attraction in the merger discussions.

 

IntercontinentalExchange was advised by Morgan Stanley, BMO Capital Markets, Broadhaven Capital partners, JPMorgan Chase, Lazard, Cociete Generale and Wells Faro, while Sullivan & Cromwell and Shearman & Sterling acted as legal counsel. Perella Weinberg Partners, BNP Paribas, the Blackstone Group, Citigroup, Goldman Sachs and Moelis & Co. advised NYSE Euronext, and Wachtell Lipton Rosen & Katz, Slaughter & May and Stibbe NV acted as legal counsel.

 

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